To correct for the underproduction of products with positive externalities, the government must
A. increase taxes on the industry.
B. provide tougher regulations on the industry.
C. fine the industry.
D. provide the incentives for the private sector to produce and consume the good.
Answer: D
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Refer to the scenario above. What is the future value of Wendy's deposit after three years?
A) $2,150.91 B) $2,278.64 C) $2,382.03 D) $2,764.12
Answer the next question on the basis of the following national income data for the economy. All figures are in billions of dollars.Personal consumption expenditures$400Government purchases128Gross private domestic investment88Net exports7Net foreign factor income0Consumption of fixed capital43Taxes on production and imports50Compensation of employees369Rents12Interest15Proprietors' income52Corporate income taxes36Dividends24Undistributed corporate profits22Statistical discrepancy0The gross domestic product for the above economy is ________.
A. $623 B. $609 C. $592 D. $584
According to the above figure, planned consumption and income are equal at an income level of
A) Y0. B) Y1. C) Y2. D) Y3.
For a demand schedule, which of the following is held constant?
A) relative prices B) quantity demanded C) quality of the good D) nominal prices